FARMINGTON – A proposed water rate increase that would raise the town’s costs for fire protection led selectmen to meet Monday with Farmington Village Corporation and Maine Rural Water Association representatives.

Selectmen pursued their questions before the water department’s public hearing on its proposed rate increase. The boost would affect 1,500-plus customers. The hearing is scheduled for 7 p.m. Thursday in the water department’s office at 137 High St.

After figuring company revenue requirements, a formula for public fire protection used by the Public Utilities Commission would have meant an even larger increase, but a 30 percent cap prevents the higher rate, Steve Levy of Maine Rural Water Association told the board.

The town’s cost, $30,427 yearly, a 13.23 percent increase for public fire protection, caught the eye of selectmen about to begin the town’s budget process.

“We struggle to balance the budget … trying to cut, but you set a rate and we just have to swallow it,” Selectman Jon Bubier told the water representatives.

The rate increase also jeopardizes the town’s ability to comply with state law imposing a 6 percent spending cap on the town, added Selectman Dennis Pike.

To provide a enough water to knock down a fire, the company maintains a 5 million gallon reservoir and a large transmission line. The company does a good job at putting money back into the system, Levy said, and it operates on a lean budget.

Local water rates are so low that the department is ineligible to get grant money for projects, yet it operates with a low percentage of debt.

“Good and cheap water … that’s the good and bad news,” Levy said.

He also maintained that pending the 13 percent increase, even coupled with the 2006 increase of 9 percent, is modest compared to similar size municipalities that are facing increases of 25 to 40 percent.

Levy told selectmen he recommends departments go for smaller rate increases about every three years rather than waiting more years and going for larger increases at once.

But Bubier still questioned what the water department was doing to keep costs down.

To curtail high electrical costs, the department began pumping water at night was one answer provided by corporation Business Manager Jane Woodman.

“We don’t have much choice in this … other than going through a lengthy petition process,” said Selectman Nancy Porter.

While municipalities are expected to provide 30 percent of revenue costs for fire protection, a petition to the state Public Utilities Commission would suspend the rate pending an investigation, leading the water department to hire an attorney to help negotiate a rate, explained Levy. But the petition process is the way to challenge it, he added.

“The village corporation does a superb job … we’re not disputing the service,” chairman Stephan Bunker said.